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‘Profiteering’ insurers hike prices for women drivers

INSURANCE companies are raising prices for young female drivers six months
ahead of new European Union regulations on gender discrimination.

Last month, women under 23 saw their average premium rise by 11.4% and further
increases are expected, even though the rules do not come into force until
December, according to Tiger.co.uk,
an insurance price comparison site.

The price hike leaves the industry open to criticism that it is using the rule
change as a cover for profiteering. AA Insurance reports a similar trend. In
the first three months of the year, the average cost of insurance for young
women increased by 4.8%, while it fell 0.9% for men, it said.

Shannon Haigh, 21, from Gloucester, paid £1,300 for her car insurance last
year. After a year of driving safely, she was expecting a lower premium from
her insurer but was quoted £1,600.